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Galapagos, having backtracked on split, weighs sale of cell therapy business

Dive Brief: Galapagos on Wednesday said it’s considering selling its cell therapy business , which previously had been the centerpiece of a restructuring plan. In January, the Belgian drugmaker said it would split into two pieces , one that would keep the name

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Dive Brief:

  • Galapagos on Wednesday said it’s considering selling its cell therapy business , which previously had been the centerpiece of a restructuring plan.
  • In January, the Belgian drugmaker said it would split into two pieces , one that would keep the name Galapagos and focus on cell therapy and another that would build a pipeline by buying assets. Then in May, the company said it was re-evaluating that plan while exploring “all strategic alternatives for its existing businesses” and looking for more outside deals.
  • In its latest update, Galapagos said it’s evaluating strategic alternatives for the cell therapy business, including a divestiture. It also announced the appointments of two new executives and two new board members who will join an already revamped leadership team.

Dive Insight:

Investors have punished Galapagos over the last five years after a series of research and development setbacks . The company’s American depositary receipts, which topped $274 in February 2020, plummeted below $23 five years later. And while the stock has ticked up in recent months, the announcement of the latest “new chapter” from Galapagos sent ADRs down 10% to under $30 apiece on Thursday. CEO Henry Gosebruch, originally tapped to lead the planned spinout company , is now charged with an overall revamp of Galapagos. He’s joined by a new CFO, Aaron Cox , and the latest hires, Sooin Kwon as chief business officer and Dan Grossman as chief strategy officer. Kn and Grossman start on Aug. 4. Together, the group needs to find a way to stem losses that have expanded with restructuring costs while employing a huge pile of cash to buy experimental medicines that could turn into blockbusters. Galapagos had 3.1 billion euros, or $3.6 billion, in cash and financial investments at the end of June after its second-quarter loss widened to 215.7 million euros from 71.3 million euros a year earlier. “The new management appears credible and has the right skillsets for the tasks at hand,” Leerink Partners analyst Faisal Khurshid wrote in a note to clients Wednesday. Still, Khurshid said he’s keeping his “market perform” rating on the stock as he waits to see how the team executes its mission. Galapagos reported a few interim steps on its “transformation journey.” The company said it’s transferred certain small molecule programs in oncology and immunology to Onco3R Therapeutics in return for equity and future unspecified “milestone-based considerations.” Gilead Sciences also agreed to give up its opt-in rights to the cell therapy business, giving full control to Galapagos.

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Source: www.biopharmadive.com ↗
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03What Comes Next

With data expected in the fourth quarter of 2026, we are prioritizing histology alongside patient-reported outcomes using the Celiac Disease Symptom Diary, one of only two instruments developed in line with U.S. Food and Drug Administration (FDA) guidance, to capture changes in symptoms such as abdominal pain and nausea. Ultimately, the broader aim is to give gastroenterologists and patients a therapeutic option for a disease that has long been managed without one. The future of drug development will not be defined by statistical significance alone, but by whether new therapies also improve the daily burden of living with celiac disease. “The first therapy to cross the line could change the field,” Geller concluded. “It would help establish celiac as a serious medical condition with options beyond a restrictive diet and open the door for what comes next.” Dr. Paul Lizzul is chief medical officer at First Tracks Biotherapeutics, a clinical ‑ stage biotechnology company advancing antibody therapeutics that modulate immune pathways implicated in autoimmune and inflammatory diseases. Marilyn Geller serves as an advisor to First Tracks Bio. Footnotes Abadie V, Jabri B. IL-15: a central regulator of celiac disease immunopathology. Immunol Rev . 2014;260(1):221-234. https://doi.org/10.1111/imr.12191. Yokoyama S, Watanabe N, Sato N, et al. Antibody-mediated blockade of IL-15 reverses the autoimmune intestinal damage in transgenic mice that overexpress IL-15 in enterocytes. Proc Natl Acad Sci U S A . 2009;106(37):15849-15854. https://doi/full/10.1073/pnas.0908834106. Anthony S, Schluns KS. Emerging roles for IL-15 in the activation and function of T-cells during immune stimulation. Research and Reports in Biology . 2015;6:25-37. https://doi.org/10.2147/RRB.S57685.

Source: www.biopharmadive.com ↗
04What the Artificial Neuron Cannot Do

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Source: www.medscape.com ↗
05Why Muscle Cells Might Do Some Heavy Lifting

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Source: www.medscape.com ↗
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Peptide Therapy Guide Editorial Team

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